updated 01:55 pm EDT, Thu July 30, 2009
iPhone profitable in Japan
Japan's largest cellphone carriers experienced contrasting performance in the first fiscal quarter, as the leader NTT DoCoMo reported a slide in net profit by 15 percent to Y147.38 billion (~$1.54 billion USD), according to the Wall Street Journal. Softbank, meanwhile, surprised analysts with a 41 percent jump in profit to Y27.38 (~$286 million USD).
While most local carriers saw declines in handset sales, Softbank saw an increase that has been attributed, in part, to the growing success of the iPhone. The carrier was also able to bring in additional service fees compared to the previous quarter.
Although the iPhone initially was criticized in the Japanese market for lacking features attractive to local buyers, the device recently has become the best-selling smartphone. The country has seen a surge in smartphone sales, similar to the trend in many other countries.